Energy crisis turns attention to coal mining

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Part of Business Day Special Report

Title: Energy crisis turns attention to coal mining
Language: English
Source: Business Day Special Report March 27, 1974
Year: 1974
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Fulltext: Page 16 Day March 27,1974 Energy crisis turns attention to coal mining The Board of Invest ments is giving priority attention this year to applicants intending to develop the country's coal deposits. Coal mining is a non pioneer area of invest ments now under the Sixth Investment Prior ities Plan with a mea sured capacity of 2,400,000 metric tons. As shown in the Bureau of Mines reports from 1963 to 1972, coal production dropped from 156,535 metric tons to 37,942 metric tons or a decrease of 76 per cent during the past nine years. The drop in the use of coal is attributed to the increasing depend ency of industry on petroleum and its by-products. Alternate source BOI believes that with the growing cost of acquiring oil from abroad, the country can benefit by utilizing coal as another energy source. Coal is primarily consumed- by .merit ■ompanie-, electric power plants and found ries. At one time loco motives, launches, steam ships, barges and the Manila Electric Company used coal to produce pow*:*. /side from ther mal plants and cement kilns, other possible users of coals are sugar centrals, carbon reduc tant manufacturers, grain driers, lumber kiln-driers and tobacco flue-curers. Coal users The BOI based its 2,400,000 demand for coal by 1976 in accord ance with the usage of coal by the following firms: (1) Coal-fired thermal plants of the National Power Corporation: Li loan, Cebu - 132,000 metric tons; Batan Island, Albay, 230,000 metric ons; Sipalay, Negros Occidental, 60,000 metric tons; and Bislig, Surigao, 125,000 metric tons. 2) Atlas Consolidated Mining and Development Corporation (six boilers at the Sangi Power Plant), 252,000 metric tons. (3) Visayan Electric. Company, 72,000 metric" tons. (4) Universal Cement Corporation, 43,000 metric tons. (5) Apo Cement Corporation, 6,000 metric tons. (6) Sugar centrals, 1,500,000. Less output expert coal drillers and experienced mine fore men. (4) Lack of capital. The BOI said that capital has not been easy to attract because the coal mining business has been considered an expensive and risky busi ness. (5) Lack of cheap means of transport. According to the Board, the lack of trans portation and shipping facilities and the high cost involved in the movement of coal from the mines to the consumers present add itional problems. (Continued on page 18) Last year, the coun try produced a total of 39,118 tons of coal, 28.16 per cent less than that produced in 1971. The BOI says, the down ward trend of pro duction and con sumption for the past 10 years makes it imprac tical to project demand based on past apparent demand. However, at the end of December, 1971, the total estimated coal reserves of the Philip pi n e s were about 1 25,230,383 metric tons. According to the Bureau of Mines, the grade or analysis of Phil ippine coal ranges from 8,390 to 14,650 BTU. The study of the National Power Corpor ation states that the quality of coal in the Philippines is suitable for fuel for most industries even without beneficia tion. Low-grade Philip pine coal is said to be eaj;, blendad witty high-— er-grade varieties for maximum utilization. At the end of 1972, there were 11 reported coal producing mines in the country. Nine of these are in Cebu. Observations The Board noted that despite its vast coal resources, the country continues to be depend ent on imported oil for industry's fuel require ments. A review of the industry by the Board resulted in the following industry observations: (1) Lack of developed market. According to the Board, there is a great potential for coal although potential users prefer to use oil and other fuels because of the unsteady supply of coal and its compar atively high price. (2) Poor mining con ditions. The existing coal mines are small and operation is intermittent. According to the BOI, mining methods used are crude. Due to the lack of facilities, mining is suspended during the rainy season. (3) Lack of trained technical men. There is noted a con tinuous lack of coal mining engineers like Exhibit I PHILIPPINE COAL DEPOSITS (As of December 31,1972) Location Owned and/or Operated Estimated Reserve (MT) Heating Value (BTU) Status Remarks Albay Rapu-Rapu, Batan Is. 16,693,000 8,680-12,300 Not operating Explored 2,000,000 NA Prospect Explored Rapu-Rapu,sBatan Is. Corp.) 2,585,000 8,500-12,300 Not Operating Explored Antique Semirara Is., Caluya 2,277,000 8,390-12,410 Not operating Explored Semirara Is., Caluya 9,982,742 (Positive) NA NA NA 2,349,219 (Probable) NA NA NA Semirara Is., Unong 4,654,988 (Positive) NA Not Operating Explored 2,172,722 (Probable) NA NA NA 3,500,000 Prospect Explored Catanduanes Hitoma, Carmoran 30,000 12,800-13,200 NA NA Htoma, Manambag 581,000 13,040-15,010 Not Operating Explored 993,200 Bit., Not operating Explored Coking 13,000-15,000 Panganiban Region 750,000 11,280-14,650 Not operating Explored Panganiban, Ermitano 180,893 (Proved) 212,126 (Probable) Payo Region 410,519 Medium Volatile 11,000-14,000 Non-operational NA Cebu Argao, Dalaguete 8,515,000 12,340-14,490 Qjerating Explored Northern Camansi Danao City 13,671,000 13,800 Operating Explored (Aznar Enterprises) Danao City —£a»postela, 55,162 10,505-11,780 Operating Explored Ckrmen (Durano & Co.) Danao City — Cahumay — 11,979,000 10,080-10,250 Producing Explored humayan (Atty. Ramon Durano) Danao City — Barrios of Mantija, Camansi, Kapilyahan (Aznar Mining Dev. Corp/ 18,000 10,500 Operating Explored ) 34,600 9,400-11,600 Operating Explored Naga, Alpaco (Bernardo Ciriaco) Naga, Toledo City 120,000 9,500-10,340 Operating Explored (Base Coal Mines) 184,887 9,870 12,290 Operating & Producing Explored Toledo City 38,000 11,598 Operating Geological Uling Mindoro Oriental 774,000 8,887-12,610 Operating Geological Bulalacao Misamis Oriental 4,014,000 8,390-12,040 Not-operating Explored Manticao (Ma. Cristina Chem. 13,000 Lignite to Operating Explored Industries) Sub-bit, for carbide manufacture Negros Occidental Calatrava — Taboso 3,398,000 8,760-12,580 Not operating Geological Calatrava — San Carlos 32,000 NA Not operating Explored Calatrava — Bagonbon 146,704 (Positive) Sub-bit. Coal Not Operating Explored 372,851 (Probable) NA NA NA Calatrava — Macasiloc 8,000 8,500-10,000 NA NA Quezon Polillo Is., Burdeous Polillo Is., Burdeous 2,295,000 10,060-12,790 Notoperating Geological (Commonwealth Ceramic 12,165 Sub-bit., Hi-Heating Not operation NA Corp.) Value Polillo Is., Burdeous Sorsogon 430,000 11,000-13,000 NA NA Gatbo 112,000 10,269 Not operating Geological Surigao del Sur Bislig-Lingag Zamboanga del Sur 4,582,000 11,010-14,260 Operating Geological Nalangas (CETOC) 16,805,000 12,270-13,900 Operating Explored Nalangas, ButongDeplahan Kabasalan, Siay 6,221,805 NA Prospect NA (Gov’t. Reservation) 1,500,000 High Volat. To Low Volat. Bit., 11,123-13,680 Leyte Villaba, Balete San Vicente (Luzon Stevedoring Co.,) 525,000 3 — 6% bitumen NA NA Total 125,230,383 MT SOURCE : BUREAU OF MINES. Business Day March 27, 1974 COAL MINING TABLES OF NATIONALIZATION LAWS AND THEIR REQUIREMENTS (Continued from page 16) The Board believes that a plant with an annual capacity of 56,100 tons is of econ omical size. With BOI incentives, total cost of this plant i^, around P1.5 million with P790,822 going into the purchase of ’machineries and equipment. Revenues at P65.00 per metric tons can reach P3,650,400 per annum. Net profit after tax is estimated at P439,086. According to the Bureau of Mines, RapuRapu, Batan Island in Albayhas a total estimat ed coal reserve of 18,693,000 metric tons; Northern Camansi, Cebu, 13,671,000 metric tons, and Carmen, Danao City, 11,979,000 metric tons. Other rich deposits of coal are found in Antique, Catanduanes, Nalangas, Zamboanga del Sur (16,805,000 metric tons), and Negros Occi dental. Many of these coal mines, although explored, are not operat ing. LEGAL PROVISIONS SUBJECT MATTER REQUIREMENTS NATURAL PERSONS JURIDICAL PERSONS BANKING 1. Rep. Act. No. 337 as amended by P.D. No. 71 (General Banking Act) 2. Rep. Act No. 4093 as amended by P.D. 119 (Private Development Bankers' Act) 3. Rep. Act No. 720 as amended by RA Nos. 1097; 5939 and P.D. 122 (Rural Banks’ Act) Regulating the establishment and operation of banking Institutions. Regulating the establishment of private development banks. Regulating the establishment and operation of rural banks. Seventy* per cent of voting stock of the Institution must be owned by Filipino citizens, except new banks established by consolidation of branches or agencies of foreign banks In the Phils. Two-thirds of the members of the board of directors must be Filipino citizens. Seventy* per cent of voting stock of the institution must be owned by Filipino citizens, except new banks established by consolidation of branches or agencies of foreign banks In the Phils. Two-thirds of the members of the board of directors must be Filipino citizens. Capital stock must be ioo% owned and held by Filipino citizens. All members of the board of directors must be Filipino LIVING UP TO A NAME: w Our name. It means the top. The summit. It motivates us to achieve management exccllcGCv1 in our opent-ions. It symbolizes too management's youth and expertise in mineral exploration, mining and ore-dressing technology. And because living up to our name is enough incentive, we are proud to share in the government's efforts to create new jobs for Filipinos, generate foreign currency for our country and produce copper and gold to serve society. Apex Exploration and Mining Co., Inc. ORTIGAS BLDG ORTIGAS AVENUE. PASIG. RIZAL BOARD OF DIRECTORS: FERNANDO A. MUNIZ Chairman IGNACIO R. ORTIGAS MARTIN C. PORTER GEORGE T. SCHOLEY VICTOR G. PUYAT ERNESTO B. RUFINO, JR. EDWARD CONRAD GEESLIN GUILLERMO C. GASTROCK PABLO M. CAPISTRANO VICENTE G. PUYAT CALIXTO Y. LAUREANO Members 4. Rep. Act No. 3779 as amended by RA 4378, Sec. 4 (b) Capital structure of savings and loan association Sixty per cent of the capital stock must be owned by citizens of the Philippines. 5. Rep. Act No. 4860 Sec. 3, as amended by RA 6142 CIVIL AERONAUTICS 1. Sec. 5. Art. XIV, Const, of the Phil. 2. Republic Act No. 776 COCONUT INDUSTRY Rep. Act No. 1369 COOPERATIVES 1. Com. Act No. 565; RA 2023 FINANCING COMPANIES Rep. Act 5980 FISHING AND OTHER* AQUATIC RIGHTS 1. Sec. 20, Public Act No. 4003 (Fisheries Act) 2. sec. 22, Public Act No. 4003, as amended by CA No. 471 3. Secs. 24 and 32, Public Act No. 4003 4. Sec. 25, Public Act No. 4003 as amended by CA No. 471. Re-lendlng by gov't, financial Institutions to private sector of foreign loans obtained by these Institutions. Grant of franchise, certificate, autho> izatlon for the operation of a public utility. Issuance of permit to engage In domestic air commerce and/or air transportation. Granting of loans to finance establishment of coconut centrals Organization of cooperative associations. Regulating the establishment and operation of financing companies. Issuance of license to operate vessels to catch fish In territorial waters of the Philippines: transfer or assignment of right. Issuance of license as fisherman to work on vessel engaged In commercial fishing. Issuance of license to take marine mollusca; transfer or assignment of right. Issuance of license for operation of pearling or shell-collecting boat; transfer of assignment of right. 5. Sec. 27, Public Act No. 4003, Issuance of shell-driver's as amended by CA No. 471. license to take marine mollusca or shell thereof. 6. Secs. 39 & 44 Public Act No. 4003 Granting of concession to fish for, collect or gather sponges In territorial waters of the Philippines: transfer or assignment of right; Issuance of special permit. Limited to Filipino citizens. At least 70% of the outstanding and paid-up capital of corporation or partnership must be held by Filipinos until loan Is fully paid. Grantee must be Filipino citizen. Grantee must be Filipino citizen. Grantee must be Filipino citizen. A cooperative association maybe formed by 15 or more persons who are citizens of the Phil, or the U.S. or of both, residing In Licensee must be citizen of the Phil, or the united States or of any other country granting similar right to Filipino cltlzensi transferee or assignee must have qualifications as licensee. Licensee must be citizen of the Phil, or the U3. br of any other country granting similar right to Filipino citizens. Licensee must be citizen or the Phil, or the U.S. or of any other country granting similar right to Filipino citizens, transferee or assignee must have qualifications Same as provided for In Sec. 24, Public Act. No. 4003, supra. ibid. ibid. Grantee must have at least 60 per cent Filipino capital. Grantee must have at least 60% Filipino capital. Grantee must be or association Filipino capital. a corporation with majority Any corporation or association with at least 61 per cent Filipino or American capital may organize a cooperative association. 60 % of the capital stock should be owned by citizens of the Philippines and must have a paid-up capital of at least P500.000; 2/3 of the members of the board of directors of the corp, must be Filipino citizens; if the managrng partners must be Filipino. Licensee must have at least 61 per cent Filipino or American capital; transferee or assignee must have qualifications as licensee. Not applicable. Licensee must have at least 61 per cent Filipino or American capital; transferee or assignee of stock must have qualifications as licensee. Same as provided for In Sec. 24, Public Act No. 4003, supra. ibid ibid
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